China authorities 'got $5 trillion' by selling peasant's land

BEIJING: Chinese authorities have earned almost $5 trillion in profit by selling land obtained from farmers to developers over the years, a top economist said according to state media.

As the country undergoes a huge urbanisation process rural land confiscations have led to numerous protests, worrying the ruling Communist Party, which sees corruption and social unrest as threats to its power.

By law, officials may provide compensation worth up to 30 times the value of the land's output, but in practice they have skimped on payments or foregone them altogether -- then sold the land to developers at much higher rates.

Wu Jinglian, an economist at the Development Research Centre of the State Council, China's cabinet, said: "Some (government) agencies have earned around 30 trillion yuan, by conservative estimates, from land price spreads in the urbanisation campaign over the past decades."

The 30 trillion yuan figure equates to $4.8 trillion at current exchange rates.

Wu, a former adviser to Zhu Rongji, premier in 1998-2003, made the remarks at an economic forum at the weekend, the official Xinhua news agency said.

it is because CCP manage those land well that the land sold is worth 5 trillion USD...

if those land were managed by Indian government or Africa countries, those land may be worth only 500 billion USD or 50 billion USD

Beside, the buyer of those land may pay 5 trillion USD to CCP, but those land may bring them 50 trillion USD in the future...so,the buyer and CCP are both winners....

only those governments who can not manage land are losers,such as the governments in Africa and India

Click to expand...

You are taking away land from poor farmers and selling it at exorbitant rates but not compensating them properly.

By law, officials may provide compensation worth up to 30 times the value of the land's output, but in practice they have skimped on payments or foregone them altogether -- then sold the land to developers at much higher rates.

If you don't compensate the peasants handsomely then its called land robbery.

Click to expand...

CCP usually compensate the peasants with the payment as huge as you can not image.

Peasant can get huge compensation, CCP can get huge land granting revenue and the land buyer can get huge profit by selling houses on land,because rocketing house price and huge house demand not only can cover the huge land cost,but also can bring enough profit for land-buyer. ....

so, the abover three sides are all winners....the only losers are the house buyers.....they are the ultimate bill-checkor of huge land cost(huge compensation for peasants,huge land granting revenue of CCP and huge profit of land-buyer)

1. Looking at the amount of appreciation in the value of that land, what kind of compensation is given to peasants?
2. What if the peasants of some place want to continue farming there?

Developing the land to such high value is good but not compensating the farmer appropriately would indicate a social imbalance in the policy.

Click to expand...

THE urbanization of China is driven by CCP's smart land management....

as long as the ultimate bill_checkors, the house buyers,can afford houses ,peasants,CCP and land-buyers all can earn huge wealth by CCP's land management.....and the urbanization of CHina will go on and on.......

However, the house price in China now is so high that one appartment usually cost decades saving of Chinese families and cause huge angers among more and more CHinese and worry of CCP...

THE urbanization of China is driven by CCP's smart land management....

as long as the ultimate bill_checkors, the house buyers,can afford houses ,peasants,CCP and land-buyers all can earn huge wealth by CCP's land management.....and the urbanization of CHina will go on and on.......

However, the house price in China now is so high that one appartment usually cost decades saving of Chinese families and cause huge angers among more and more CHinese and worry of CCP...

So, it is high time that CCP reform its land management.....

Click to expand...

Please read the article. It says, the compensation for the peasants is skipped all together or payed very low compensation. The only one benefitting here is the CCP and its mandarins.

By law, officials may provide compensation worth up to 30 times the value of the land's output, but in practice they have skimped on payments or foregone them altogether -- then sold the land to developers at much higher rates.

it is because CCP manage those land well that the land sold is worth 5 trillion USD...

if those land were managed by Indian government or Africa countries, those land may be worth only 500 billion USD or 50 billion USD

Beside, the buyer of those land may pay 5 trillion USD to CCP, but those land may bring them 50 trillion USD in the future...so,the buyer and CCP are both winners....

only those governments who can not manage land are losers,such as the governments in Africa and India

Click to expand...

Does manage include taking away land forcibily and hording them for decades and then reselling them?

This is called looting in India.Thank God Indian govt does not indulge in this kind of theft(Rob Vadera may have other ideas).

For example if a person's family owns some valuable plot of lands for decades .Then CCP officials give him some compensation that is way below the actual potential that can accrue to him, if he is allowed to manage the land himself,

After a few years the same CCP officials sells this land to some other citizen at a manifold price means there is no justice in this system.

Scope for corruption in these kinds of land deals will be more than 10 trillion!!!. No free judiciary. No justice!!!

If a chinese industrialist earns money by owning a factory his income is secure from CCP officials.if he deposits his wealth in his bank account his money is seured for his family. if a chinese peasant owns some land it can be taken away at far lower price by CCP officials and sold to another chinese citizen at an exorbitant price!!!!.Is this justice?

Does manage include taking away land forcibily and hording them for decades and then reselling them?

This is called looting in India.Thank God Indian govt does not indulge in this kind of theft(Rob Vadera may have other ideas).

For example if a person's family owns some valuable plot of lands for decades .Then CCP officials give him some compensation that is way below the actual potential that can accrue to him, if he is allowed to manage the land himself,

After a few years the same CCP officials sells this land to some other citizen at a manifold price means there is no justice in this system.

Scope for corruption in these kinds of land deals will be more than 10 trillion!!!. No free judiciary. No justice!!!

If a chinese industrialist earns money by owning a factory his income is secure from CCP officials.if he deposits his wealth in his bank account his money is seured for his family. if a chinese peasant owns some land it can be taken away at far lower price by CCP officials and sold to another chinese citizen at an exorbitant price!!!!.Is this justice?

Click to expand...

1. peasants usually are not losers of CCP's land management, but winners as well as CCP and land buyer/land developers.
the losers are the house buyers, who are the ultimate bill-checkors.

2..The country,China, is also the winners of CCP's smart land management,because it makes full use of every inch land of the country...
that is why the same size of land in China is worth 5 trillion USD while it is worth only 500 billion USD in India or 50 billiion USD in Africa.
that is why Shanghai is much advanced than Bombay, and Chinese cities are much more than cities in India and Africa.

3. India's so called "fair land policy" and "respect of ownership' ,in fact, makes upgrade of land impossible or unaffordable .it makes .
peasants,the government,land buyers and house buyers all losers....nobody is the winner.

and the ultimate bill-checkors are the country ,which has the most backward infrastructures in the world.

1. peasants usually are not losers of CCP's land management, but winners as well as CCP and land buyer/land developers.
the losers are the house buyers, who are the ultimate bill-checkors.

2..The country,China, is also the winners of CCP's smart land management,because it makes full use of every inch land of the country...
that is why the same size of land in China is worth 5 trillion USD while it is worth only 500 billion USD in India or 50 billiion USD in Africa.
that is why Shanghai is much advanced than Bombay, and Chinese cities are much more than cities in India and Africa.

3. India's so called "fair land policy" and "respect of ownership' ,in fact, makes upgrade of land impossible or unaffordable .it makes .
peasants,the government,land buyers and house buyers all losers....nobody is the winner.

and the ultimate bill-checkors are the country ,which has the most backward infrastructures in the world.

1. peasants usually are not losers of CCP's land management, but winners as well as CCP and land buyer/land developers.
the losers are the house buyers, who are the ultimate bill-checkors.

2..The country,China, is also the winners of CCP's smart land management,because it makes full use of every inch land of the country...
that is why the same size of land in China is worth 5 trillion USD while it is worth only 500 billion USD in India or 50 billiion USD in Africa.
that is why Shanghai is much advanced than Bombay, and Chinese cities are much more than cities in India and Africa.

3. India's so called "fair land policy" and "respect of ownership' ,in fact, makes upgrade of land impossible or unaffordable .it makes .
peasants,the government,land buyers and house buyers all losers....nobody is the winner.

and the ultimate bill-checkors are the country ,which has the most backward infrastructures in the world.

Click to expand...

Ask any economist about the massive scope for corruption in these hush-hush deals, in the absence of free market forces. The house buyers are bill checkers alright , but the CCP officials are the ones who make the real money.

But in india it can not happen, because free market forces are operating and stamp duty is collected in a fair and transparent manner as per the guide line value and latest sale value in the area.Under reportage of the sale proceeds are rampant, but th money goes directly to land owner not some CCP officials. The peasant gets his fair share. No CCP official type robbers are there in this process.

urbanization is happening across the country in all the top 80 cities in a gradual manner with land owners getting the money and house buyers paying the money with no intermediate brokers like the CCP official walking away with the moolah.

Ask any economist about the massive scope for corruption in these hush-hush deals, in the absence of free market forces. The house buyers are bill checkers alright , but the CCP officials are the ones who make the real money.

But in india it can not happen, because free market forces are operating and stamp duty is collected in a fair and transparent manner as per the guide line value and latest sale value in the area.Under reportage of the sale proceeds are rampant, but th money goes directly to land owner not some CCP officials. The peasant gets his fair share. No CCP official type robbers are there in this process.

urbanization is happening across the country in all the top 80 cities in a gradual manner with land owners getting the money and house buyers paying the money with no intermediate brokers like the CCP official walking away with the moolah.

Click to expand...

the only difference here is in prc we admit there are some injustice and unfairness and wrong doings going on which have been deemed illegal but not handled proparly by the govments bi it central or local while indians like you dont even accept the simple truth which is always there and evidently serious......

'In Bhatta Parsual, Greater Noida (UP), about 6000 acres of land is being acquired by infrastructure company Jaiprakash Associates to build luxury townships and sports facilities - including a Formula 1 racetrack - in the guise of building the Yamuna Expressway. In total, the land of 1225 villages is to be acquired for the 165km Expressway. The farmers have been protesting this unjust land acquisition, and last week, four people died - while many were injured during a clash between protesters and the police on May 7, 2011. If the government continues its land wars in the heart of India's bread basket, there will be no chance for peace.

the only difference here is in prc we admit there are some injustice and unfairness and wrong doings going on which have been deemed illegal but not handled proparly by the govments bi it central or local while indians like you dont even accept the simple truth which is always there and evidently serious......

'In Bhatta Parsual, Greater Noida (UP), about 6000 acres of land is being acquired by infrastructure company Jaiprakash Associates to build luxury townships and sports facilities - including a Formula 1 racetrack - in the guise of building the Yamuna Expressway. In total, the land of 1225 villages is to be acquired for the 165km Expressway. The farmers have been protesting this unjust land acquisition, and last week, four people died - while many were injured during a clash between protesters and the police on May 7, 2011. If the government continues its land wars in the heart of India's bread basket, there will be no chance for peace.

Every one knows this is robbery in plain day light and people will go to court and get justice if the authrities divert the acquired land to a profit oriented venture instead of the stated reason of public good in case of Expressway.

Bhatta parsual won't be a closed case with no-justice board.It is being hotly contested. And the courts have the power to award a higher compensation . What about China? Recently a public referendum was taken and bowing to the majority vote of affected people , the Ambani led Reliance's SEZ project nin maharstra was cancelled .

The whole SEZ gravy train has been stopped mid way after rightly seeing through the intention of decelopers is not to industrialize but to loot the land from the farmers.Recently a high coutr verdict in Tamil Nadu stayed the further acquistion by state govt till it finshes devloping all the land it has already taken forcibily from the peasants. And guide line values were increased ten fold so as to compensate the farmer according to market rates.

Where are those checks and balances in a nation afarid of Face book and Google?